Doing business in China: the relationship is indispensable

Doing business in China: the relationship is indispensable

[China Glass Network] It is almost impossible to do business in China. The question is: How much relationship does it take?
“To do business in China, we must understand the behavior patterns of Chinese people. It also retains both formal and informal channels. It is indispensable to have two channels in parallel,” said Luo Jiade, a sociology professor at Tsinghua University.
He said that although companies that “have a good reputation” and “have a good starting point” may not be able to use the network to succeed in China, most companies do need more or less a certain relationship. After all, there is a relationship. It will be smoother to start things.
Professor Luo Jiade, who recently focused on studying Chinese relations, pointed out that foreigners have some misunderstandings about China's "relationship". When it comes to relationships, they associate corruption. “In fact, this is not the case. In my opinion, social networks involving people-to-person relationships can be divided into five levels.”
He agrees that the lower-level networks may involve corruption and bribery, but this practice will soon be eliminated. The relationship to the upper level is a paid transaction, which Luo Jiade calls "legal but vulgar." The next level is that one party is helping the other, but does not ask the other party to return immediately. Luo Jiade believes that the relationship between people at this level is based on mutual trust. Another level above this is that the two sides work together in a common goal and purpose to create a win-win situation.
However, the definition of a higher level of human network sounds counterintuitive. He said: "People at a higher level network can do nothing. He only needs to have a good reputation. (If) he has a reputation and reputation, people naturally want to establish contact with him. Therefore, if one reaches this At the network level, he doesn't have to worry about it and even violate the rules and regulations."
For foreigners who have not really understood the concept of relationship, Luo Jiade has a specific suggestion: "First of all, we need to understand Chinese culture and learn Chinese, because relationship operation is an inseparable part of Chinese social network."
In addition, given that China’s 5,000-year-old traditional culture is highly respected by the Chinese, “foreigners better understand and respect Chinese culture, otherwise there will be cultural conflicts.”
Having said that, Chinese culture is also responding to the trend of the times and is increasingly injecting new meanings. Luo Jiade pointed out that as China develops into a more modern society, a new network of the foundations based on the common interests and goals of all parties will emerge.

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